This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks to Quench Your Portfolio's Thirst

Boston Beer

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Boston Beer (SAM - Get Report) is a handcrafted beer brewer that manufactures its beer under the Sam Adams label. The U.S. craft beer market continues to expand in what is estimated in annual mid teen percentage rates. In the meantime, total domestic beer sales are flat to slightly lower. This is a trend which should continue for some time.

Boston Beer continues to expand across the country from its humble beginnings in Massachusetts. This expansion is not only in bottled form but also in draft form as craft beers are taking market share in all distribution channels. You might assume that beer giants such as Anheuser-Busch Ambev (BUD), Molson-Coors (TAP) and SABMiller would not be concerned by this smaller competition, which has a market cap of just about $1.4 billion.

Quite the opposite: Those suds makers are trying to develop their own handcrafted brands. It may come down to one of these larger companies making an unsolicited bid for Boston Beer one day. I would also not rule out an acquisition by a beverage or snack business such as Coca-Cola or PepsiCo.

Recently, Boston Beer acquired Angel City Brewing, a privately held Los Angeles-based craft brewer. This is a strategically important acquisition as Boston Beer now has a West Coast base of operations to further catalyze its growth.

The stock sports a premium multiple of nearly 24 time earnings when compared to more traditional beer companies. I believe that this is justified given the huge opportunity for growth that the company has, or the possibility of a takeover. I have a $120 price target on shares of Boston Beer for the end of 2012. However, as the stock tends to be quite volatile, I consider Boston Beer to be a high risk investment with excellent long term growth opportunities.
4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DEO $114.93 0.00%
KO $43.36 0.00%
MNST $152.26 0.00%
SAM $215.39 0.00%
AAPL $118.88 0.00%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs